What’s a Newsletter Worth? When we talk about worth, we're referring to the value to a subscriber. It might surprise you to learn that some subscribers pay $800 to $900 a year to get their hot little hands on vital information that keeps them abreast of current trends and shifts in their respective fields (usually about financial info). They’re the heavy hitters; the major league newsletters that are few and far between and need not concern us for now. On the other end of the economic scale, many beginning newsletter publishers go too low in pricing their publication. Some are priced as little as $12 to $15 a year. Remember, it’s much easier to lower your price, but raising it can be tough. Research your market and make a decision on the high side.
This is what will make you or break you as a newsletter publisher. Many say that at least 50% of their subscription revenue must be used for marketing. This means you can expect to spend $500 in advertising for every $1,000 in subscriptions you receive. If that seems discouraging, don't let it. You can still make big money in this field and once you’re established, the advertising expense drops. This is why the high subscription price was stressed earlier; you need the additional dollars to work with in the beginning.
As with promoting any product, you will need to advertise your newsletter in places frequented by your target market. Her are some ideas:
- KEY TO SUCCESS! Develop a website to promote your newsletter with great salescopy. You need a website to be successful with a newsletter. Make sure you offer people a chance to sign up at least twice on your site. www.FreeOnlineBusiness.org
- Give your newsletter the appearance of a magazine by designing a magazine style eCover. This makes people feel like they are subscribing to something more than an email in their inbox once a week.
- Offer a bonus or free gift for signing up.
- Post to newsgroups with related topics.
- Co-registration with other newsletters with similar markets.
- Contact clubs or organizations in your market.
- Place ads in newsletters from your same market.
- Use your email signature to promote sign-ups.
- Ask for a referral from current subscribers.
- Provide a free newsletter and use it to promote other products (i.e. your own or affiliate).
NOTE: There is some disagreement among marketers about offering a free sample issue for a paid newsletter. The reason given is that best results are usually obtained by building interest and anticipation in the advertising and not satisfying the resulting curiosity until you get the subscription order. Once a prospect sees a sample issue, it seems, they have satisfied their curiosity about it and procrastinate subscribing, usually not ordering at all, however sincere their intentions might have been. You might want to test both methods and continue with the one that brings best results for you.
Let's say your newsletter sells for $24 a year. You spend $5,000 in advertising and receive 7,500 inquiries. You convert 10% of these inquiries to subscribers. This gives you 750 subscribers @ $24 each for a total gross of $18,000. Subtract your original $5,000 advertising cost leaving you $13,000 in all profit!
Of course, the next logical step is to increase the advertising to three or four times the original amount, hopefully to produce an equally proportionate number of subscribers and you’re on your way to big bucks.
Next seek advertising for the newsletter itself. Although blatant advertising should NOT be included within the pages of the newsletter, you can generate additional revenue by including subtle affiliate offers of books, reports or a service that can be provided for the readers. If presented in a dignified manner that is perceived as being helpful, not as cold advertising, this can provide extra income throughout the year.
Finally, before subscriptions end, send a renewal notice to keep the subscriber on your list. Everyone won't renew, of course, but you should be able to keep about 50% each year without the additional advertising costs. It’s always cheap to keep an existing customer than it is to find a new one. That's when the real money will starts coming, as you grow your base, soon you'll be well on your way to financial freedom.
To your success,
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